ABC Corp. has 675,000 shares of $1 par value common stock. The current market price...
90.2K
Verified Solution
Link Copied!
Question
Accounting
ABC Corp. has 675,000 shares of $1 par value common stock. The current market price is $100. The CEO of the company is considering either a $1 per share cash dividend, or 12% stock dividend, or a 2-for-1 stock split. Calculate the impact on the items of stockholders' equity for each alternative option in the following table.
|
|
| Option 1 | Option 2 | Option 3 |
|
| Original Balances | If 2-for-1 stock split | After $1 per share cash dividend | If 12% stock dividend paid |
| Paid-in capital | $4,500,000.00 |
|
|
|
| Retained earnings | $10,000,000.00 |
|
|
|
| Total stockholders' equity | $14,500,000.00 |
|
|
|
| Outstanding shares | $675,000 |
|
|
|
| Par value per share | $1.0 |
|
|
|
| Market value per share | $100 |
|
|
|
| Total Market value of equity | $67,500,000.00 |
|
|
|
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.